Answer:
The only cost which is not relevant is: "A variable production cost incurred prior to split-off."
Explanation:
To decide whether a firm should further process or sell a product at a certain production point, the firm should consider about the additional revenue they get from further process and the additional cost the further production consumes in comparison to selling the product without further processing. If the marginal revenue is above the additional cost, further production decision will be made.
That is the reason why the variable production cost incurred before the split-off is sunk cost ( i.e whether the decision is to sell of to further process, the cost has already consumed) which make it irrelevant in the decision making regarding to sell or further process.
Answer:
The correct answer is <em>International Trade</em>.
Explanation:
Specialization in economics is not limited to individuals and firms, the soul of microeconomics. It also has applications in macroeconomics, which studies the economic actions of nations, regions and entire economies. In a macroeconomic context, specialization means that nations concentrate on the production of goods in which they have the greatest advantage while making trade contracts with other countries to obtain other goods.
David Ricardo, another classic economist of the 18th century and the beginning of the 19th century, discussed the specialization based on comparative advantages that help determine if it is of greater benefit to manufacture a product in the country or import it. It assumes, for example, that the United States produces clothes and computers cheaper than India. While the United States apparently would have an absolute advantage, it would not have a comparative advantage, which measures the ability to produce in terms of opportunity cost. Because production resources are limited, opportunity costs to produce computers mean that less clothing is manufactured. Compared to what has been sacrificed, the country should specialize in producing goods over which it has a comparative advantage while importing the other product
Answer:
D mixed economy
Explanation:
A mixed economy combines the aspects of a free market an those of a command economy. The mixed economy gives buyers the freedom to choose what they want. Entrepreneurs choose where to locate their business, its type, and the quantities to supply.
The governments play a regulatory role in the economy. It protects the rights to own properties and enforces contractual agreements. The governments intervene in provisions of public goods such as roads, hospitals, and ports.
A mixed economy will comprise both private and government doing business. Citizens are free to make economic decisions and own the factors of production. The government is mainly the regulator and provider of social services.
Answer:
$75.12 million
Explanation:
For computation of Valence's share price first we need to find out the share price which is shown below:-
Share price = (Paid earning of Valence × Ended year of expected earning) ÷ (Equity cost of capital - Expected growth rate)
= (40% × $800 million) ÷ (9% - 7%)
= (0.4 × $800 million) ÷ (0.09 - 0.07)
= $320 million ÷ 0.02
= $16,000 million
Now, Valence's share price
= Total value ÷ Outstanding total shares
= $16,000 million ÷ 213 million
= $75.12 million